he Financial Ombudsman Service received its 500,000 complaint about payment protection insurance last week, signifying just how far the PPI mis selling scandal stretches.
The landmark complaint was from a consumer in Wolverhampton who was self employed at the point of sale.
The self employed were frequent victims of mis sold PPI. For a PPI policy to be valid against redundancy, the customer must be in full time employment. Therefore anyone who is self employed and has PPI is paying for a policy that will contain limitations and exclusions. This aspect should have been explained fully to the client prior to purchase of the policy. If it wasn’t, it may have been mis-sold.
The FOS, who deals with complaints when customers and financial services cannot reach an agreement, is currently receiving 400 PPI complaints every hour. It has already received over 140,000 PPI complaints in this financial year (since 6 April 2012); last financial year it received 157,716 in total.
Natalie Ceeney is the Chief Financial Ombudsman:
“It’s extraordinary that we’ve received our 500,000th complaint about PPI – and despite these record numbers, this mis selling scandal shows no sign of slowing.
“While it’s good news that more people know that they can come to the Ombudsman, it’s clear that unless the banks sort out their complaints quickly and fairly, people will only face increasingly longer waits for justice.”